The New York City Council

Testimony submitted by Speaker Christine C. Quinn

June 17, 2010

Thank you for having me here today and giving me an

opportunity to speak about a problem that is plaguing so
many New Yorkers.

Last year, I asked the Rent Guidelines Board to consider

the thousands of New Yorkers who were pulling
themselves out of the recession and struggling to make
ends meet.

I strongly recommended that the Board implement a rent

freeze, keeping these New Yorkers in mind.
Even though we have made some progress this year, most
New Yorkers are still feeling those same pressures.

About 400,000 New Yorkers are still without a job right

now.
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Although the number of unemployed New Yorkers is for

the first time in several months below 400,000, it is still
near the all-time City high.

Not to mention that our Citys unemployment rate is

significantly higher than both the States and national rates.
The latest figures show that more than 10 percent of New
Yorkers are either still unemployed or looking for jobs.

Combine those figures with the fact that New York City
has one of the highest rental prices in the country and we,
again, continue to face the same problem: forcing New
Yorkers to live at an unsustainable level.

A quarter of all of New Yorkers spend more than half of

their income on rent.

Although that number is, at this point, commonly known, I

want you take a minute to think about that, and consider
how ridiculous that is.

I strongly recommend for this board to rule in favor of a

rent freeze. Although it would be unprecedented here in the
city, I want to note that the Westchester County RGB
approved a rent freeze for one- and two-year leases.
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Last year, the board passed a 3% increase and yet what

might seem a small, insignificant raise could mean
hundreds of New Yorkers not being able to pay their rent
that month.

Costs this year for landlords have increased minimally.

According to the RGB report, the price index of operating
costs saw the smallest increase in years.

But if this board has to approve an increase, I recommend

that it be the smallest increase possible.

At least this way, if an increase has to be done, it would

provide less of a burden on tenants while still adjusting
reasonably for landlords.

Finally, let me address the serious problem facing

financially distressed rental buildings.

Since the housing and financial crisis, overleveraged

buildings have become a rampant and oppressive problem
in our City.

The City Council and HPD have formed a task force with
advocates and experts to deal with this seeking solutions
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to individual buildings and broad policy changes at the city,

state, and federal level.

HPD estimates that there are almost 5,000 buildings

experiencing financial distress due to loans that are not
supported by the rent rolls.

And the Citizens Housing and Planning Council estimates

that this could be affecting as many as 100,000 apartments.

These buildings are in this situation due to speculation,

pure and simple from BOTH landlords and banks.

These reckless loans created by speculative owners should

not be a consideration for the RGB in determining rent
increases.